There appears to be some prospect that the proposals of
the German Government for the increase of the Army will not be carried, the Free Conservatives and the Clericals both declaring that as Russia can no longer join France in an attack on the Empire, there is no longer any necessity for increased expenditure on the land forces, more especially cavalry, which is the most expensive arm. This disposition will be increased by an official statement made in the Reichs- tag on Wednesday that the Imperial Treasury cannot be placed in a sound position without an elaborate reform of finance and taxation, "which," says the Secretary of State for the Imperial Treasury, "he will propose in the autumn, and which will profoundly affect the relations between the German Empire and its separate States." On the other hand, it is possible that the relief from the Russian side will tempt the Government to hurry on the increase of the German Navy with the funds saved upon the land forces.
